UNIVERSITY  OF  ILLINOIS 
LIBRARY 


Class  Book  Volume 


Ja  09-20M 


ILLUMINATING  GAS. 


WHO  HAS  BENEFITED  BY  IT? 


BOSTON: 

ALFRED  MUDGE  & SON,  PRINTERS, 


No.  24  Franklin  Street. 

1886. 


4 


V 


KW  o-ir 


WHO  BENEFITS  BY  COMPETITION^iTHE;^  COM- 

PANIES OR  THE^  CO^iSUMERS?..  , / . 


The  following  list  of  prices  at  which  gas  was  sold  in  July,  1884, 
will  answer  that  question  : — 


No  Competition.  Population  Price  per 

Results  of  Population 

Price  per 

Census  of  1880. 

1,000  ft. 

Competiton.  Census  of  1880. 

1,000  ft. 

BOSTON  GAS  L.  CO. 

NEW  YORK  . 

1,206,299 

$2.26 

abt. 

160,000  $1,60  > 

BROOKLYN,  566,663  2.00-2.60 

[Boston  proper.]  to  city  1,30  ' 

BALTIMORE  . 

. 332,313 

1.62i 

LOWELL  . . . 

. 59,485 

1.60 

city  1.86 

LAWRENCE  . . 

. 39,178 

1.90 

ALBANY  . . 

. 90,758 

2.60 

HAVERHILL  . . 

. 18,475 

1.80 

ROCHESTER  . 

. 89,366 

2.00 

CHARLESTOWN 

. 33,734 

2.00 

MEMPHIS  . . 

. 33,592 

3.00 

ROXBURY  . . . 

. 60,879 

2.00 

BUFFALO  . . 

. 155,134 

2.26 

CAMBRIDGE  . . 

. 52,740 

2.00 

NEW  ORLEANS 

. 216,090 

C 3,60 

EAST  BOSTON  . 

. 29,918 

2.00 

1 4.00 

LYNN 

. 38,284 

2.00 

DETROIT  . . 

. 116,340 

2,00 

NEW  BEDFORD . 

. 26,875 

1.87 

ST.  LOUIS  . . 

. 350,518 

2,60 

WORCESTER  . . 

. 58,295 

2.00 

C 1.60 

SAN  FRANCISCO,  233,959 

SOUTH  BOSTON 

. 56,370 

2.00 

C 2,26 

WASHINGTON,  D.C.,  147,293 

1.60 

TROY  .... 

. 56,747 

2,76 

NASHVILLE  . . 

. 43,350 

2.10 

PROVIDENCE 

. 104,857 

1.90 

to  city  1.05 

INDIANAPOLIS 

. 7.5,056 

2,00 

SYRACUSE,  N.  Y. 

. 51,792 

1.80 

JERSEY  CITY 

. 120,722 

2,60 

COLUMBUS,  0.  . 

. 51,665 

1.26 

CHARLESTON,  S.  C.,49,984 

2,50 

CINCINNATI  . . 

255,708 

1.60 

Z.V\<=\'5 


A COMPARISON  -PF;  : XHE  PRICES  AT  WHICH  GAS 
HA^^  solo"  kk*'  BOSTON  BY  THE  BOSTON 

GAS^LI^HT^^CQMPANY  AND  IN  NEW  YORK  SINCE 


BOSTON.  NEW  YORK. 


Years. 

Price  per  1,000  Population 

ft.  from  census. 

Price  per  1,000  ft. 

Population. 

1849  . 

. .$3.50 

$3.50 

1851  . 

. . 3,00  136,851 

4,00 

515,547 

1852  . 

. . 2,50 

3,00 

1856-57 

. . 2.50 

2,50  & meter  rent. 

1860  . 

. . 2,25  177,840 

2,50 

805,638 

1863  . 

. . 2,25 

2,50 

Four  companies 

1864  . 

. . 2,50 

2,50 

2,50  ^ 

1865  . 

. . 3,25  war  tax. 

3,50  r war  tax. 

4,00  ^ 

Six  companies 

1870  . 

. . 2,75  250,526 

3,00 

942,292 

1871  . 

. . 2.50 

2,75 

1872  . 

. . 2,50 

2,75 

1874  . 

. . 2.50 

2,75 

1875  . 

. . 2,50 

2,75 

1876  . 

. . 2,25 

2,50-2,75 

1879  . 

. . 2,00 

,75-2.50 

Seven  companies 

1881  . 

. . 2,00  362,839 

2,25 

1,206,299 

1882  . 

. . 2.00 

2,25 

1883  . 

. . 1,80 

2,25 

1884  . 

. . 1,50  to  city  1,30 

2,25 

1885  . 

. . 1,50  to  city  1,30 

1,75 

Eight  companies, 

,/ 


A SHORT  HISTORY 


COMPETITION  IN  GAS 

IN 


LONDON,  PARIS,  AND  A FEW  OF  THE  ESPECIALLY 
FAVORED  CITIES  OF  THE  UNITED  STATES. 


Digitized  by  the  Internet  Archive 
in  2017  with  funding  from 

University  of  Illinois  Urbana-Champaign  Alternates 


https://archive.org/details/competitioninillOOunse 


LONDON.  ?t» 

C-f^k-iZL^  C'kL--,  rnj.  CL^.Ji^  . 

' Population  in  1881,  3,831,719. 

M ^ ^ ^L^i^fc-c  'yo  <^ 

The  Gas  Light  and  Coke  Company  was  organized  in  London  in 
1810,  with  a capital  of  £200,000. 

The  principle  of  free  competition  in  gas  was  tried  in  London  for  ^ 
many  years,  and  one  company  after  another  was  chartered,  until  in 
1845,  there  were  thirteen  companies  competing  in  London,  and 
the  pipes  of  six  or  seven  companies  were  laid  in  the  same  street. 
The  anno3"ance  to  the  public  in  the  constant  disturbance  to  the 
pavements,  the  frequent  leaks,  and  the  difficulty  in  ascertaining 
which  of  the  many  companies  was  responsible  therefor  and  bound 
to  repair  them,  and  the  fluctuation  in  prices,  at  last  obliged  Par- 
liament to  interfere.  For  ten  years  only  one  gas  company  paid  an}' 
dividends,  and  that  company  only  about  two  per  cent.  / 

In  1860,  by  The  Metropolis  Gas  Act,  the  following  companies, 
all  supplying  gas  in  London,  were  obliged  to  give  up  competition, 
and  supply  gas  only  in  the  districts  established  by  the  Act ; viz.. 
The  Gas  Light  and  Coke  Company,  The  City  of  London  Gas  Light 
and  Coke  Company,  The  Commercial  Gas  Light  and  Coke  Com- 
pany, The  Equitable  Gas  Light  Company,  The  Great  Central  Gas 
Consumers  Company,  The  Independent  Gas  Light  and  Coke  Com- 
pany, The  London  Gas  Company,  The  Phoenix  Gas  Light  and  Coke 
Company,  The  Ratcliffe  Gas  Light  and  Coke  Company,  The  Surrey 
Consumers  Gas  Company,  The  South  Metropolitan  Gas  Light  and 
Coke  Company,  The  Western  Gas  Light  Company,  and  The  Imperial 
Gas  Light  and  Coke  Company.  Since  1870,  various  acts  of  Par- 
liament have  been  enacted  obliging  the  various  companies  to  con- 
solidate, and  in  1875,  The  Commercial  Company  consolidated  with 
the  Ratcliffe  ; in  1876,  The  Gas  Light  and  Coke  Company  ab^-orbed 
seven  of  the  other  Companies ; and  in  1881,  The  South  Metropoli- 
tan absorbed  three  other  companies;  so  that  in  1884,  London  was 
supplied  under  supervision  of  Parliament  with  cheap  gas  at  a price 
fixed  by  law,  and  inspected  by  government  inspectors,  by  the  fol- 
lowing companies,  viz. : — 


V 


8 


1.  The  Gas  Light  and  Coke  Company.  Capital, 

£9,656,147.  Price  per  1,000  ft 68-74  cents 

Cubic  feet  of  gas  sold,  13,749,951,337. 

2.  The  Commercial  Company.  Capital,  £745,845. 

Price  per  1,000  ft 70  cents 

Cubic  feet  of  gas  sold,  1,562,426,390. 

3.  The  South  Metropolitan  Compan3^  Capital, 

£2,092,221.  Price  per  1,000  ft 70  cents 

Cubic  feet  sold,  3,842,445,805. 

4.  The  London  Compan}^  Capital,  £898,891. 

Price  per  1 ,000  ft.  . ' 75  cents 

Cubic  feet  sold,  1,596,035,873. 

The  English  Parliament  has  been  lately  petitioned  to  compel  the 
consolidation  of  the  Gas  Light  and  Coke  Company  and  the  Commer- 
cial Company,  which  will  be  undoubtedly  done  in  the  near  future. 


Q'UU- 


parS/fran^ 


' Population:  1872,1,851, 


692 ; 1881,  2,269,023. 


Gas  was  for  some  years  furnished  to  the  citizens  of  Paris  by 
eight  competing  gas  companies.  So  much  inconvenience  and  an- 
noyance was  caused  by  this  competition  that,  in  1855,  they  were 
forced  by  the  Emperor  Napoleon  to  consolidate  into  one  company. 

The  Parisian  Gas  Company.  At  the  same  time  a commission  was  ap- 
pointed by  the  Municipal  Council  of  Paris  to  determine  the  kind  of 
gas  to  be  made  by  the  company,  and  after  an  examination  of  the 
different  processes,  including  that  for  making  water  gas,  the  gas  com- 
pany was  ordere  ’ to  make  coal  gas,  and  that  only. 

In  1878  gas  was  sold  for  $1.45  per  1,000  feet,  and  the  company 
paid  eighteen  per  cent  dividends.  ' 

In  1882  the  company  paid  to  the  city  of  Paris  $2,500,000,  and 
sold  9,724,921,186  cubic  feet. 

In  1883  it  sold  10,024,955,150  cubic  feet,  and  paid  dividends 
13^  per  cent.  The  capital  of  the  company  is  256,245,000  francs 
= about  $51,259,000. 

The  company  is  obliged  to  divide  with  the  city  all  profits  over 
ten  per  cent.  ( 


d- 


NEW  YOlJK.Qlrl^Y.. 


Population:  1850,  515,547;  1870,  912^29^:, 


1 88,0,,  ly^Oe. 299. 


In  1823  the  first  gas  company,  the  New’ York  Gas  Light  Com- 
paii}’,  was  organized  with  a capital  of  $1,000,000,  which  was 
increased  by  a stock  dividend  in  1871  of  $3,000,000,  to  its  present 
capital  of  $4,000,000. 

In  1836  the  Manhattan  Gas  Corapan}^  was  organized  as  a com- 
peting coinpanj^,  with  capital  which  has  been  increased  graduall}" 
to  $4,000,000,  and  after  a short  competition  it  purchased  a dis- 
trict ft’om  the  New  York  Compan}",  and  both  companies  sold  gas  at 
same  price. 

Before  1871  the  Harlem  Gas  Company  organized  in  1855  with 
capital  of  $120,000,  increased  by  1884  to  $2,000,000,  and  The  Met- 
ropolitan Gas  Campan}’  organized  in  1858  with  capital  increased 
to  $2,500,000,  were  both  organized  as  competing  companies,  and  ^ 
began  by  competing,  and  ended  by  purchasing  a district  from  the 
other  companies,  and  ceasing  to  compete. 

In  1871  they  all  sold  gas  for  $2.75  per  1,000  cubic  feet. 

In  that  year  the  Mutual  Gas  Light  Company’  was  organized  by 
the  Tweed  ring  with  a nominal  cajutal  of  $5,000,000,  of  which  not 
more  than  $2,500,000,  was  paid  in,  and  was  given  a roving  commis- 
sion to  sell  gas  anywhere  in  New  York  Cit}’.  They  laid  their  pipes 
only  in  the  thickly  settled  part  of  the  city  and  in  the  principal 
streets,  but  soon  agreed  to  charge  the  same  price  as  the  other  com- 
panies and  competition  ceased.  They  made  a coal  gas,  enriched 
with  naphtha. 

In  1874  the  Municipal  Gas  Light  Company  was  chartered  with 
an  original  capital  of  $500,000  (increased  in  1880  to  $3,000,000, 
with  bonds  issued  to  amount  of  $750,000),  to  make  water  gas,  and 
in  1876,  having  laid  their  pipes  onl3"  in  the  large  thoroughfares, 
an  active  competition  ensued  for  several  3’ears,  during  which  the 
price  of  gas  fluctuated  from  75  cents  up  to  $2.50  per  1 ,000  feet. 

An  a^'cement  was  made  in  1878  b}"  which  all  the  companies  j 
agreed  to  charge  $2.25  per  1,000  feet  for  five  years. 

The  Knickerbocker  Gas  Corapanj^  was  started  soon  after,  as  a 
competing  company,  and  was  bought  out  by  the  Municipal  Gas 
Compan}"  at  a cost  of  $1,250,000. 


10 


In  1880  'tile'  ITqw;  .York  G-as  Co.  adopted  the  manufacture  of 
water  gns,‘  but  made  no  reductioa  in  its  price. 

In  1884  a :eon&olidatioii  :a>as  ' effected  by  which  six  companies 


combined  with  the  following  results 


Amount  of  Stock. 


New  York  pas .^-ight  Co. 
Manhattan  Gas  Light  Co. 
Metropolitan  Gas  Light  Co. 
Municipal  Gas  Liglit  Co.  . 
Knickerbocker  Gas  Light  Co. 
Hailem  Gas  Light  Co. 


$7,821,000 

12,352,000 

7.422.000 

5.276.000 

3.104.000 

3.103.000 


$39,(578,000 


In  1883  the  Equitable  Gas  Light  Co.  was  organized,  with  capi- 
tal $2,000,000  and  bonds  to  amount  $1,000,000,  and  laid  pipes, 
and  built  its  works  in  1884,  and  is  now  selling  water  gas  at  $1.75. 

The  Mutual  Gas  Light,  with  capital  of  $5,000,000,  has  not  3’et 
joined  the  consolidation,  nor  has  the  Equitable  Gas  Light  Co. 


c 


Amount  of  capital  on  which  to  pa}’  dividends 
Mutual  Gas  Light  Compan}^ 


Equitable  Gas  Company  . 


Amount  of  gas  sold  about  4,800,000,000  cubic  feet. 


$39,078,000 
5,(  00,000 

$44,078,000 

3,000,000 

$47,078,000 


Amount  to  be  added  to  cost  of  gas  to  pa}’  10  per  cent  dividend 
= $1 .00  per  1 ,000  feet. 

Amount  to  be  added  to  cost  to  pay  6 per  cent  = 60  cents. 

The  Union  Gas  Company  was  chartered  February,  1885,  with 
capital  of  $1,000,000 


^ krO^lyn/n:  Y. 


Population:  1870,  396,099;  1880,  566,663. 


The  Brooklyn  Gas  Company  was  organized  about  1849,  and 
furnished  gas  to  the  original  portion  of  the  city  without  compe- 
tition until  1861,  and  now  has  a capital  of  $2  OCO,000. 

The  Williamsburg  Gas  Light  Company  was  organized  about  1854, 
and  has  supplied  the  Eastern  District  of  Brooklyn  ever  since  with- 
out competition. 


11 


The  Citizens’  Compan}^  was  organized  as  a competing  compan}’’ 
in  1861,  with  a capital  of  $1,520,000,  and  entered  upon  a vigorous 
competition  with  the  old  Brooklyn  Company,  during  which  gas 
was  sold  as  low  as  t.wpivn  and  one  hn]f‘  ppr  1 orTLfpnf-  ; hut  in 

1863,  the  Citizens’  Company  purchased  a district  from  the  Brook- 
lyn Company,  and  competition  ceased. 

The  Peoples  Company,  with  a capital  of  $1 ,600,000,  and  the 
Metropolitan  Gas  Company,  with  a capital  of  $1 ,000,000,  were  both 
organized  as  competing  companies,  and  after  a short  com[)etition, 
bought  districts  from  the  old  company  and  agreed  upon  a price. 

In  1873,  the  Nassau  Company,  with  capital  of  $1,700,^  00,  was 
organized,  competed,  bought  out  a district,  ceased  to  compete,  and 
agreed  on  same  price. 

In  1877,  the  Mutual  Gas  Light  Company  was  organized,  but  did 
not  succeed  ; and  in  1880,  the  Fulton  Municipal  Gas  Company 
bought  its  charter  and  began  an  active  competition  with  the  oth^n’ 
companies,  under  the  control  of  the  Standard  Oil  Company.  It 
made  water  gas  and  had  a nominal  capital  of  Sl,8<  0,000. 

The  Fulton  Municipal  Company  competed  first  with  the  Peoples^  \ 
Company,  then  with  the  Citizens’,  and  by  threatening  competition 
with  the  Brooklyn  Company  and  the  Williamsburg  Company,  obliged 
them  to  pa}^,  in  one  case  $85,000,  and  in  the  other  $20,000,  per 
annum  to  be  let  alone.  During  the  competition  gas  was  givei;^ 
awa}^  at  times,  and  sold  at  nominal  rates. 

In  1883-84,  the  Fulton  Company  attempt(  d competition  with  the 
Nassau  Company,  but  was  obliged  to  give  it  up,  and  the  two  com- 
panies have  agreed  to  charge  the  same  price  for  gas,  viz.,  $2  per 
1,000  feet. 

Where  there  is  no  competition  with  coal  gas,  the  Fulton  Company 
has  charged  $2.50  per  1,000  feet,  until  a few  weeks  ago,  when  the 
price  was  reduced  to  $2. 

In  1884,  the  capital  invested  by  the  seven  companies  amounted 
to  about  $12,000,000,  and  the  gas  sold  was  1,100,000,000  cubic 
feet. 

Amount  to  be  added  to  the  cost  of  each  1,000  feet  of  gas  to  paj^ 
dividend  of  ten  per  cent  on  this  capital,  about  $1.10.  Price  of  gas 
in  1884  per  1,000  feet,  $2  and  $2.50. 

In  1884,  the  Brookl}^  Equitable  Gas  Company  has  been 
chartered,  with  a capital  of  $1,000,000,  but  has  not  j^et  begun 
operations. 


12 


Boston  Gas  Light  Co.,  price  of  Gas. 

1874  $2.50,  per  1., 000  ft. 

Brooklyn. 

$3.00 

1876 

2.25  “ “ 

. 

. * . 

— 

1879  ' 

2.00’  “ 

. 

. . 

2.75 

1882 

2.00  “ 

. 

. . . 

2.50 

1883 

1.80  ‘‘  “ ■ 

C 2.00 

1884 

1.50  “ “ 

. 1 2.50 
C 2.00 

. ' ( 2.50 

/O  /o  BALTIMORE,  MD. 

Population:  1850,  16.), 054;  1870,  267,354;  1880,332,313. 

Up  to  the  year  1872  the  Baltimore  Gas  Light  Compan}’’,  with  a 
capital  of  000, 000,  supplied  the  whole  city  with  coal  gas. 

In  1872  a newcompan}’.  The  Peoples’ Gas  Light  Company,  was 
organized  with  a capital  of  S2, 000, 000,  and  at  once  without  competi- 
tion purchased  a district  from  the  old  company  and  agreed  upon  a 
price  with  the  old  company.  In  1874  the  price  charged  by  both 
lor  1,000  feet  was  $2.75. 

In  1878  or  1879,  the  Consumers  Gas  Company  was  organized,  with 
a nominal  capital  of  $2,500,000,  to  m ike  water  gas,  and  compete 
with  the  Baltimore  Gas  Company.  The  price  of  gas  was  then  $2.00 
per  1,000  feet.  The  old  company  sold  gas  for  $1.50,  the  Water 
Gas  Company  at  $1.90  per  1,000  feet,  until  in  1880  all  three  com- 
panies combined  and  formed  the  Consolidated  Gas  Light  Companj’ 
of  Baltimore,  with  a capital  of  $9,600,000. 

In  1881  a new  coal  gas  company.  The  Equitable  Gas  Compan}", 
was  organized,  with  a capital  of  $2,500,000,  which  competed  with  the 
Consolidated  Company  and  sold  gas  for  $1.00  per  1,000  feet. 

In  1884  The  Equitable  Gas  Company  ceased  to  compete  and  com- 
bined with  the  Consolidated,  and  gas  was  sold  for  $1.62^  to  con- 
sumers, and  to  city  for  $1.85  per  1,000  feet. 

Amount  of  capital  upon  which  consumers  must  pay  interest, 

$12,000,000. 

Amount  of  gas  sold  annuall}^  about  1,000,000,000  cubic  feet. 

Amount  to  be  added  to  cost  of  gas  to  paj"  ten  per  cent  dividend, 
$1 .20  per  1,000  feet. 

Amount  to  be  added  to  cost  of  gas  to  paj'  six  per  cent  dividend, 
72  cents  per  1,000  feet. 


SAN  FRANCISCO. 


Population  in  1880,  233,959. 


\ 


In  1852  the  San  Francisco  Gas  Light  Company  was  organized, 
and  built  its  works  in  1854-55.  Since  that  year  there  have  been 
from  time  to  time  three  new  companies  chartered,  which  built 
works,  competed,  and  then  sold  out  to  the  San  Francisco  Gas 
Light  Company,  causing  an  unnecessary  addition  to  the  capital  of 
the  old  company  of  $5,000,000. 

In  1880  a water  gas  company.  The  Central  Gas  Light  Company, 
was  organized,  with  a capital  of  $1,000,000.  The  amount,  how- 
ever, paid  for  erecting  their  works  was  reported  to  be  only  $149,-  , 

000  in  cash,  and  $400,000  in  stock. 

Competition  ensued  between  these  companies  until  October,  1882, 
when  both  companies  agreed  upon  a price.  The  capital  on  which 
consumers  in  San  Francisco  now  pay  interest  amounts  to  over 
$10,000,000  ; and  therefore  the  price  of  gas  in  1882  was  $3.00  per 
1,000  feet.  In  1883,  since  the  competition  began,  the  price  was 
$1.50 ; but  in  October,  1884,  the  price  was  raised  to  $2.25,  where 
it  now  remains. 

Both  companies  paid  only  two  per  cent  dividends  during  last  two 
years. 


Population  in  1880,  104,857. 


In  1849  the  Providence  Gas  Light  Company  was  organized,  and 
has  now  a capital  of  $2,500,000. 

In  1863  the  price  of  gas  was  $3.00  per  1,000  feet;  in  1865, 
$4.40. 

In  1872  the  Citizens’  Gas  Light  Company  was  organized  as  a 
competing  coal  gas  company,  but  did  not  go  into  active  operation, 
and  its  charter  was  purchased  in  1874  by  a naphtha  gas  company, 
which  in  1876  laid  pipes  in  the  streets  and  built  gas  works,  and 
competition  began  in  1877.  In  1876  gas  was  sold  for  $2.25. 

In  18/7  gas  was  sold  by  the  old  company  at  $2.00  per  1,000 
feet. 

In  1878  the  Citizens’  Gas  Company  sold  out  to  the  old  company 


14 


for  $700,000,  and  competition  ceased.  Price  of  gas  advanced  at 
once  to  $2.25. 

The  price  of  gas  in  1883  was  $2.10  per  1,000  feet;  and  in  1884, 
$1.90  and  $1.80  per  1,000  feet. 

Gas  sold  in  1884,  about  345,000,000  cubic  feet. 

Amount  to  be  added  to  cost  of  gas  to  pay  ten  per  cent  dividend, 
70  cents. 

A new  water  gas  company  is  now  (1884)  organized  to  compete, 
and  has  applied  to  city  government  for  permission  to  lay  pipes. 

INDIANAPOLIS. 

^ Population  in  1880,  75,056. 

In  1851  the  Indianapolis  Gas  Light  Company  was  chartered  with 
a capital  of  $20,000,  and  has  supplied  the  whole  city  ever  since,  with 
the  exception  of  a short  interval  in  1867,  when  a new  company.  The 
Citizens’  Gas  Light  and  Coke  Company,  having  been  organized  to 
make  gas  from  a patent  process,  competed  for  a short  time,  dug  up 
all  the  streets  and  tlien  sold  out  to  the  old  company. 

, In  1867  the  price  was  $3.00,  and  before  that  date  it  had  been  $4.50. 
\ In  1870  the  capital  of  the  company  was  $500,000. 

In  1883  and  1884,  the  price  of  gas  was  $2.00  per  1,000  feet. 

new  ORLEANS. 

Population  in  1880,  216,090. 

Up  to  1870  the  New  Orleans  Gas  Light  Company,  which  was  in- 
corporated in  1835  and  given  an  exclusive  right  for  forty  3’ears, 
supplied  the  whole  city.  In  1870  the  price  of  gas  was  $3.00  per 
1,000  feet. 

In  1870  the  Crescent  City  Gas  Light  Company  was  chartered, 
with  the  exclusive  right  after  1875. 

In  1875  the  two  companies  consolidated,  retaining  the  name  of 
the  New  Orleans  Gas  Company. 

Z'  In  1880  the  Municipal  Gas  Company  was  organized,  and  was 
bought  out  by  the  New  Orleans  Gas  Company  for  the  sum  of 
$1,250,000,  which  was  added  to  the  capital.  The  price  of  gas 
was  then  raised  to  $3.50  per  1,000  feet,  and  the  united  capital  is 
\ now  $3,750,000. 

Ill  1883  water  gas  was  substituted  for  coal  gas,  and  the  price 


15 


reduced  to  $2.00  per  1,000  feet,  but  it  has  not  been  satisfactory 
to  the  consumer. 

In  1884  a new  company,  The  Consumers’  Gas  Company,  was 
chartered,  and  another  company  has  applied  for  a charter. 


cpr\ 


TROY,  N.  Y. 


Population  in  1880,  56,747. 

The  Troy  Gas  Light  Company  organized  in  1848,  with  capital  of 
$100,000  ; originally  supplied  the  whole  city.  The  West  Troy  Gas 
Light  Company  was  then  organized,  and  purchased  a portion  of  the 
territory  of  the  Troy  Gas  Light  Company,  and  in  1870  the  price 
for  gas  in  Troy  was  $3.75  per  1,000  feet,  and  in  West  Troy,  $4.50. 

The  Citizens’  Gas  Light  Company  was  organized  in  1875,  with  a 
capital  of  $600,000,  and  after  a short  competition  purchased  a dis- 
trict  of  the  old  company  ; and  $700,000  was  added  to  the  capital 
on  which  consumers  must  pay  interest. 

The  price  of  gas  in  1883  was  $3.00  per  1,000  feet;  in  1884, 
$2,75  per  1,000  feet. 


CHARLESTON,  S.  C. 

Population  in  1880,  49,984. 

The  Charleston  Gas  Company,  with  a capital  of  $400,000,  sup- 
plied the  whole  city  until  1857,  when  a new  company  was  organized, 
The  Carolina  Gas  Light  Company,  with  a capital  of  $366,600,  which 
built  works,  dug  up  the  streets,  and  begun  a competition  with  the 
old  company,  which  lasted  one  year,  and  then  the  new  c6mpany 
combined  with  the  old  company,  with  a united  capital  of  $766,600. 

In  1883,  the  price  of  gas  was  $2.85  per  1,000  feet;  in  1884, 
$'2.50. 


BUFFALO,  N.  Y. 


Population  in  1880,  155,134. 

Up  to  1870  the  Buffalo  Gas  Light  Company  supplied  the  city 
without  competition. 

In  1870  two  companies  were  organized,  the  Buffalo  Mutual  Gas 
Company  to  make  coal  gas,  with  a capital  of  $750,000  in  stock, 
and  $200,000  in  bonds,  and  the  Oxy-hydrogen  Gas  Company,  with  a 


IG 


capital  of  $750,000,  to  make  gas  under  a patent  process,  which  was 
unsuccessful,  and  in  1874  it  reorganized  as  the  Citizens’  Gas  Com- 
pany to  make  coal  gas. 

/ In  1870  the  Mutual  Gas  Compan}^,  without  competition,  bought 
a district  from  the  old  company. 

In  1874  the  Citizens’  Gas  Company  bought  a district  from  the 
\ old  company,  and  ceased  to  compete. 

The  additional  capital  on  which  to  pay  interest  amounts  to 
$1,700,000. 

All  three  companies,  until  1884,  charged  $2.25  per  1,000  feet; 
in  1884  they  charged  $2.00  and  $1.80. 

A fourth  company  now  (1884)  proposes  to  enter  and  compete. 


ALBANY,  N.  Y. 


Population  in  1880,  90,758. 


/ The  Albany  Gas  Light  Company  supplied  the  whole  city  until  a 
new  company.  The  Peoples’  Gas  Light  Compan}^  was  organized, 
when  the  usual  competition  ensued,  ending,  as  usual,  in  the  pur- 
chase of  a district  from  the  old  company  by  the  new,  and  an 
increase  of  capital  of  $1,000,000,  upon  which  the  consumers  pay 
^ interest. 

Amount  of  gas  sold  in  1884,  100,000,000  cubic  feet.  Price  of 
gas  in  1860,  $3.50  per  1,000  feet. 

In  1883  and  1884,  the  price  of  gas  was  $2.00  to  $2.50. 


Population  in  1880,  503,185. 


The  Chicago  Gas  Company  was  first  organized,  and  made  and 
supplied  coal  gas. 

Afterwards  the  Hyde  Park  Company  was  organized,  and  supplied 
a portion  of  the  cit}",  and  has  now  a capital  of  $5,000,000. 

In  1855  a new  company.  The  Peoples’  Gas  Light  and  Coke 
Company,  was  chartered.  In  1862  it  bought  a district  from  the 
Chicago  Gas  Light  Company,  and  competition  ceased. 

The  price  of  gas  sold  by  the  Hyde  Park  Company  in  1883  was 
$3.00  per  1,000  feet,  hj  the  Chicago  Gas  Company  $2.25,  and  by 
the  Peoples’  Gas  Company,  $3.00, 


17 


J In  1884  a fourth  company,  The  Consumers’  Gas  Company, 

a water  gas  compan}^,  was  organized,  and  competition  with  the 
Chicago  Gas  Company  began,  and  is  still  going  on.  The  Chicago 
Gas  Company  charged  $1.00  per  1,000  feet  in  1884,  and  the  Con- 
sumers’ Gas  Company,  $1.25. 

The  Consumers’  Gas  Company  built  works  through  a construc- 
tion company  at  a cost  of  about  one  and  one  half  millions  of  dol- 
lars, and  paid  for  them  $2,000,000  in  bonds  and  $3,000,000  in 
stock,  — an  added  capital  of  $5,000,000. 

LOUIS. 

Population  in  1880,  350,518. 

Up  to  1870  the  St.  Louis  Gas  Light  Company,  with  a capital  of 
$600,000,  supplied  the  city. 

In  1870  the  Laclede  Gas  Light  Company  was  organized,  and  has 
now  a capital  of  $1,600,000.  It  began  competition,  which  lasted  less 
than  a year,  when  the  usual  combination  took  place,  and  the  St. 
Louis  Gas  Light  Company  sold  a district  to  the  Laclede  Gas  Light 
Company  for  $700,000.  The  price  of  gas  sold  by  both  companies^ 
was  then  advanced  from  $2.25  per  1,000  feet  to  $3.25. 

In  1874  the  price  of  gas  was  $3.09  per  1,000  feet. 

In  1883  a water  gas  company,  the  St.  Louis  Gas  Fuel  and 
Power  Compan}^,  was  organized  to  sell  fuel  gas,  but  finding  that 
unprofitable  began  to  make  and  sell  illuminating  gas,  and  competed 
with  the  Laclede  Gas  Light  Company.  The  price  of  gas  in  1884, 
when  competition  was*  active,  was  $1.50.  In  1883  the  price  per 
1,000  feet  was  $2.50  ; and  in  1884,  $2.50  where  there  was  no  com- 
petition. 


ROCHESTER  N.  Y. 

Population  in  1880,  89,366. 

The  Rochester  Gas  Light  Company  was  organized  in  1848,  with 
caiptal  of  $700,000,  and  until  1872  was  the  only  company  in  the 
city,  and  supplied  the  whole  city.  The  price  of  gas  in  1870,  was 
$3.50. 

In  1872  the  Citizens’  Gas  Company,  a coal  gas  company  was 
organized’ with  capital  of  $500,000,  and  began  competition  in  1874, 
and  after  a short  competition  the  old  company  sold  to  it  its  business 


and  mains  on  the  east  side  of  the  Genesee  River.  In  1881  the 
Municipal  Gae  Company  was  organized,  and  began  competition, 
making  and  selling  water  gas.  The  gas  of  all  three  companies 
sold  during  competition  for  80  cents  to  $1.00  per  1,000  feet. 

In  1883  the  price  was  raised  to  $2.10  per  1,000  feet,  and  in 
1884  a compromise  was  made,  and  all  the  companies  charged 
$2.00. 

The  Municipial  Gas  Company  issued  $250,000  bonds  and  $500,- 
000  stock,  making,  with  an  indebtedness  of  $200,000,  a total  cap- 
ital of  $950,000  on  which  consumers  must  pay  interest,  besides  on 
the  capitals  of  the  two  other  companies,  $1,200,000. 

DETROIT. 

Population  in  1880,  116,340. 

The  Detroit  Gas  Light  Company  supplied  the  city  of  Detroit 
until  1873.  In  1872  the  price  of  gas  was  $3.00  per  1,000  feet, 
with  discount,  making  the  price  $2.50  net  per  1,000  feet. 

In  1871  the  Mutual  Gas  Light  Company  was  chartered.  It  orga- 
nized with  a capital  of  $500,000,  built  its  works,  and  competition 
ensued.  Gas  was  at  times  sold  as  low  as  forty-five  cents  per 
1,000  feet;  and  in  1874  and  1875  it  was  sold  by  the  old  company 
for  $2.00  per  1,000  feet,  and  by  the  new  company  for  $1.00  per 
1 ,000  feet. 

In  1877  competition  ceased,  and  a division  of  the  city  was  made, 
the  new  company  pa3fing  $140,000  to  the  old  company.  Each  com- 
pany supplied  its  own  district,  and  the  price  of  gas  was  at  once 
raised  to  $2.50  per  1,000  feet,  until  1883,  when  the  price  was  fixed 
at  $2.25.  In  1884  the  price  was  $2.00  per  1,000  feet. 

The  new  company  in  1873  and  1875  issued  $300,000  bonds,  mak- 
/ ing,  with  its  capital,  $800,000  additional  capital  upon  which  the 
people  of  Detroit  must  pay  interest. 

JERSEY  CITY. 

Population  in  1880,  120,722. 

Until  the  year  1853,  the  Jersey  City  Gas  Light  Company  supplied 
Jersey  City,  and  after  that  5'’ear’ supplied  Hoboken  also.  It  has  a 
capital  of  $750,000. 

In  1864,  the  Hudson  County  Gas  Light  Company  was  chartered. 


19 


and  the  Jersey  City  Gas  Light  Company  sold  to  it  its  mains  and 
business  in  Hoboken  for  $100,000. 

In  1868,  the  Peoples’  Gas  Light  Company  — a third  coal  gas 
company  — was  organized,  and  purchased  a portion  of  the  old  com- 
pany’s remaining  territory,  and,  in  1883,  sold  36,000,000  cubic 
feet  of  gas. 

In  1883  the  capital  of  the  three  companies  amounted  to  about 
$2,000,000,  and  the  price  of  gas  per  1,000  feet  was  $2.50. 

In  1883-84,  a fourth  company  had  been  organized — The  Con- 
sumers’ Gas  Company — with  a reported  capital  of  $1,000,000, 
and  $600,000  bonds,  with  the  purpose  of  making  water  gas. 


RESUME. 

The  three  items  of  cost  of  illuminating  gas  are  : — 

Firsts  Cost  of  manufacture,  including  labor  and  material. 

Second^  Cost  of  distribution,  including  salaries  and  all  ex- 
penses. 

Third,  Interest  on  capital  invested. 

Tlie  Boston  Gas  Light  Company  has  capital  of  $2,500,000,  and 
sells  about  900,000,000  cubic  feet  of  gas. 

Amount  to  be  added  to  cost  of  gas  to  pay  ten  per  cent 

dividends $0  28 

The  New  York  Consolidated  Gas  Company  must  add  to 

cost  of  gas  to  pay  ten  per  cent  dividends  . . 1 00 

The  Baltimore  Consolidated  Gas  Compan}^  must  add  to 

cost  of  gas  to  pay  ten  per  cent  dividends  . . 1 20 

The  Brooklyn  gas  companies  must  add  to  cost  of  gas  to 

pay  ten  per  cent  dividends  . . . . . 110 

COMPETITION  HAS,  TO  SAY  THE  LEAST,  RETARDED 
MATERIALLY  THE  GRADUAL  DECREASE  IN  THE  COST 
OF  GAS  WHICH  HAS  TAKEN  PLACE  ALL  OVER  THE 
COUNTRY,  CAUSED  BY  THE  DECREASE  IN  COST  OF 
MATERIAL  AND  BY  THE  IMPROVEMENTS  IN  THE 
PROCESSES  OF  MANUFACTURE. 


